Things they don’t teach you in business school.
Although it is commonly referred to as “accounting software” this software should really be called a “Management Information System”. Why? Because financial transactions are the genesis of management data. The quality of output is a function of the quality of input. Little in, little out. Garbage in yields garbage out.
1. Know What Management Needs to See — and When
Know what management needs to see on an hourly, daily, weekly, and/or monthly basis. Get a consensus as to what info management needs to steer the organization.
If management needs to see the sales on a daily basis then make certain the software can produce those data at that time interval. If management needs to see the amount of inventory on a weekly basis, be certain the software can report from multiple sources of inventory, such as raw material, work in process, committed inventory, safety stock, and finished goods inventory levels. If an inventory product requires multiple components to make one inventory item you need to know the inventory levels for all the sub-assembled products.
2. How Many Users Will Access the Software?
The software provider will use this as a metric to inform you of the monthly support cost.
But the user count is about more than the cost. It also determines how your team interacts with the system. Think through everyone who will touch the software — not just the accountants. Managers who approve purchase orders, department heads who pull budget reports, and warehouse staff entering inventory receipts — all of these are users. Miss them now, and you’ll be renegotiating your contract later.
Also, ask about concurrent users versus named users. Some systems charge per named user — every person with a login, whether they use it daily or once a month. Others charge based on the number of users logged in simultaneously. Depending on your team’s work patterns, one model may cost significantly less than the other.
Finally, ask whether different user types have different price tiers. A read-only report viewer should not cost the same as a full-access transaction entry user. If the vendor has only one user type at one price, that’s worth noting.
3. How Many Entities Will You Be Controlling?
This may be a concern to you because some software companies may be limited to the number of entities their software can handle.
An “entity” in accounting terms means a separate legal or operational unit — a subsidiary, a division, a holding company, a joint venture, or a separate location with its own P&L. If you own or operate more than one of these, you need software that can manage them all without requiring you to log in and out of separate systems.
Two questions to press the vendor on: Can the software handle intercompany transactions — where one entity sells to or loans money to another? And can it produce consolidated financial statements across all entities at once? These are not edge cases for multi-entity businesses. They are daily realities. A system that cannot handle them will cost you significant manual work every month.
Also, ask whether each additional entity is included in your base price or triggers a new fee. Some platforms charge per entity. If your business grows by acquisition or you spin up a new division, that cost structure matters.
4. Will All Transactions Be Handled in US Dollars?
We live in a global economy. There is no reason to think we don’t trade goods and services in multiple currencies. Are you buying goods in one currency, selling in another, and reporting a consolidated amount in US Dollars? If you need multi-currency, ask for it.
This is Part 1 of an ongoing series on how to evaluate and buy accounting software. More questions are coming in Part 2.
Ready to see how Plus & Minus handles all of the above in a single, unified system?
No modules. No add-ons. One file, every function — built for teams with 10 to 500 employees.
Bottom Line: know what data management needs to see and buy the software that fills the need at the most efficient price within the least amount of time for implementation.
Frequently Asked Questions: Buying Accounting Software
What is the most important question to ask when buying accounting software?
The most important question is: what does management need to see, and how often? Your accounting software is not just a bookkeeping tool — it is a management information system. If it cannot deliver the right data to the right people at the right time, it is failing its core purpose regardless of how many features it has.
How do I know how many users I need for accounting software?
Start by identifying every person who will need to enter data, run reports, approve transactions, or access financial information. This includes accounting staff, managers who pull reports, and any department heads who interact with the system. Most vendors price per user, so an accurate count directly affects your monthly cost.
Does my accounting software need to handle multiple business entities?
If you own or manage more than one company, division, or legal entity, yes. Some accounting platforms limit the number of entities they can manage or charge significantly more for each additional entity. Always confirm entity limits before signing a contract.
What is multi-currency accounting, and do I need it?
Multi-currency accounting allows your software to record transactions in foreign currencies and automatically convert them for reporting — typically in US Dollars. If you buy from overseas suppliers, sell internationally, or have foreign subsidiaries, you need this capability. Without it, you will have to perform manual currency conversions, which introduces errors and delays.
What is the difference between accounting software and a Management Information System?
Accounting software records financial transactions. A Management Information System (MIS) transforms those transactions into actionable data for decision-makers. The best accounting platforms serve both functions — they handle the ledger and give management the visibility they need to run the business. When evaluating any platform, ask not just “can it record this transaction?” but “can it report on it the way we need?”
How long does it take to implement accounting software?
Implementation timelines vary widely based on the complexity of your business, the number of modules you are activating, and how much historical data you are migrating. Simple deployments can take a few weeks; complex multi-entity, multi-currency implementations can take several months. A vendor who cannot give you a realistic timeline is a red flag.
What should I look for in an accounting software demo?
Come to the demo with a list of specific business scenarios. Ask the vendor to walk through how the software handles your inventory structure, reporting cadence, entity setup, and currency requirements. A good demo answers your questions — not just the vendor’s talking points.